Due to trade secrets, Elon Musk and xAI are suing OpenAI

By EngineAI Team | Published on September 29, 2025 | Updated on December 19, 2025
Due to trade secrets, Elon Musk and xAI are suing OpenAI
As part of the ongoing legal struggle between Elon Musk and his former business, xAI has filed a new lawsuit alleging OpenAI of systematically poaching personnel to steal trade secrets. The specifics: Eight former workers were named by xAI; they were allegedly recruited through a coordinated operation, and some of them acknowledged copying source code to their own devices. While using the encrypted messaging software Signal to communicate with the same OpenAI recruiter, two developers are accused of downloading xAI's codebase. Additionally, according to court documents, a top finance officer who was aware that xAI's data center activities were its "secret sauce" disregarded legal warnings. The "latest chapter in Musk's ongoing harassment," according to OpenAI, which has previously taken action against OAI's reorganization, mission, and antitrust claims. Elon vs. OpenAI is the ultimate gift if you enjoy drama. However, the case also highlights the negative aspects of this summer's AI talent battles and lab hopping, where proprietary innovations are now only a job change away from maybe joining the competitor.